ProLogis European Properties (Euronext: PEPR), Europe's largest owner of modern distribution facilities, announced today (July 27, 2009) that it has closed and received funding for a new four-year secured bank loan facility for £86.145 million (approx. 100 million) with Eurohypo AG, in line with the announcement made on July 23, 2009. Net proceeds from the loan will be used to reduce outstanding debt.
The £86-million loan facility is secured on a portfolio of 15 prime UK distribution facilities.
The £86-million loan facility is secured on a portfolio of 15 prime UK distribution facilities and will mature in July 2013, with the potential to extend for a further year if certain criteria are met in July 2013. The key terms of the loan are a fixed rate of 5.93% p.a., an initial loan-to-value of 50% and no amortization of loan principal until maturity.
Peter Cassells, Chief Executive Officer, said: "We are pleased to have completed this secured financing with Eurohypo, a new lender for PEPR. This transaction demonstrates the attractiveness to lenders of the strong and stable cash flows generated by our portfolio of high-quality prime distribution facilities even in the current difficult market environment. It also emphasizes the ability we have to take advantage of our access to debt capital markets."